3 LI Realty Firms Fined For Discriminating Against Clients Of Color

LONG ISLAND, NY — Three Long Island realty firms will have to pay tens of thousands of dollars in fines in a settlement announced today, after the state attorney general's office found they discriminated against people of color who were buying homes.

The investigation into the three firms — Keller Williams Great Nassau, based in Garden City; Keller Williams Realty Elite, based in Massapequa; and Laffey Real Estate, based out of Greenvale — was prompted by a Newsday investigation into unfair housing practices on Long Island. An investigation into a fourth firm remains ongoing.

According to the attorney general's office, the three firms steered people of color away from buying homes in predominantly white neighborhoods, and subjected them to different requirements than white homebuyers.

In some cases, real estate agents were recorded showing preferential treatment to white buyers, disparaging neighborhoods of color and directing buyers of color to homes in neighborhoods where residents predominantly belonged to communities of color, prosecutors said.

“Efforts to discriminate against any New Yorker's fair access to housing cannot, and will not, be tolerated,” said Attorney General Letitia James. “These investigations have uncovered a pervasive culture of allowing unlawful discrimination and violations of every New Yorker’s right to fair housing. These settlements should send a clear message: if you discriminate and deny New Yorkers their basic right to housing, we will take action.”

Prosecutors said the investigation involved review of two paired tests conducted on Laffey Real Estate agents — one in the firm’s Huntington office and another in Great Neck.

In Huntington, the firm required a potential Black homebuyer to obtain a pre-approval letter from a mortgage lender before he was shown a home. The same standard was not applied to a white buyer.

In Great Neck, an agent lectured a Hispanic potential homebuyer about his finances, suggesting that he limit his search to an area he could afford without any insight into his financial situation. The same agent did not give the affordability lecture to a white homebuyer looking for homes in the same neighborhood, and instead steered him towards neighborhoods that were less diverse, saying, “Do you want your kids to be in school with kids that they relate to?”

Based on thorough review of evidence collected throughout the investigation, prosecutors determined that Laffey Real Estate agents unlawfully discriminated against homebuyers based on race, color and national origin, in violation of the Fair Housing Act.

Keller Williams Great Nassau and Keller Williams Real Estate also engaged in illegal and discriminatory housing practices, the attorney general's office said. For example, one agent warned a white client against a particular neighborhood, citing recent gang violence, but then proceeded to tell a Black client that the same area has “the nicest people.” The Black client was also directed toward predominantly non-white areas more than the white client, in a practice known as racial steering.

A Keller Williams Great Nassau agent required a Black homebuyer sign an exclusivity agreement before touring homes, but showed properties to a white homebuyer immediately, without any mention of such an agreement. In another instance, the agent told a white homebuyer to avoid school districts where a majority of the students were of color, saying they were not good schools, and even admitting to the potential homebuyer, “legally, I get in big trouble if I [tell you this].”

In their tests, race was the only difference between the potential homebuyers, the attorney general's office said. They had similar financial profiles and identical terms for their future homes.

"With these actions, we’re delivering a forceful message: New York state has zero tolerance for discrimination,” said Gov. Kathy Hochul. “Here in New York, we firmly believe that housing is a human right and I thank Attorney General James and Secretary of State Rodriguez for their work to enforce our laws and protect that right for all New Yorkers.”

All three realty firms violated the Fair Housing Act and the New York State Human Rights Law, prosecutors said. The Department of State has also taken action against individual Realtors, including revoking the license of a former Realtor at Keller Williams Great Nassau, and fining another agent. Investigations into other agents are also pending.

As part of the settlement, Laffey Real Estate will pay $30,000 to the state and $35,000 to Suffolk County to conduct unannounced fair housing testing of any agent at any of its branches. In addition, the firm must create an online complaint form for potential buyers and sellers to report any potential instances of discrimination, and is required to provide quarterly fair housing training to all its agents.

Keller Williams Greater Nassau and Keller Williams Realty Elite will pay $25,000 to Suffolk County to promote enforcement of and compliance with fair housing laws. They must also spend up to $25,000 on fair housing courses and training for their agents.